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> The consequence of renouncing non-profit status is that the $130.5m in donations is characterized as taxable income to the corporation Or can they convert to
by jgalt212 2y ago
> The consequence of renouncing non-profit status is that the $130.5m in donations is characterized as taxable income to the corporation
Or can they convert to equity, then it's not income.
- deleted 2y ago[deleted]
- gamblor956 2y agoNo, if it was characterized as a donation on the non-profit's financials, after the loss of non-profit status the amount will be treated as revenue unless the donation legalese contained a conversion clause. But conversion clauses are extremely rare. 99.9999% of the time, if a donor is concerned that an entity will do something to jeopardize or deliberately lose its non-profit status, they simply won't make the donation.